Jeff Radebe blames international factors for high fuel prices

Minister in the Presidency Jeff Radebe during the Youth Entrepreneurship Awards at the Southern Sun on December 05, 2017 in Pretoria, South Africa. The awards, also known as Step Up a Start Up, are the culmination of a five-month month entrepreneurship development programme, where nine finalists who have come up with the most innovative social and environmental business models were chosen.
Photo: Gallo Images / Sunday Times / John Liebenberg.

Energy minister Jeff Radebe has blamed international factors for the rising cost of fuel in South Africa.

Speaking in the National Assembly during a debate on the rising cost of fuel, Radebe placed the blame on the country’s lack of crude oil reserves as the reason why it cannot dictate the price of its fuel.

South Africa has experienced six consecutive fuel price hikes in recent months.

“The main contributors to the increasing levels of South African fuel prices are international factors, namely the levels of international crude oil prices, levels of international refine petroleum products and the levels of the Rand US dollar exchange rate.

“All these factors are influenced by international events beyond what is happening within the borders of our country,” Radebe told parliamentarians.

He says that resolving the country’s fuel price crisis will not be easy and that it requires a multi-dimensional approach.

“South Africa currently does not have crude oil reserves and as a result we are heavily dependent on the importation of crude oil for about 80% of our country’s fuel demand.”

The fuel price is expected to increase in October.

Meanwhile, Inkatha Freedom Party’s (IFP) Mkhuleko Hlengwa has called on government to tighten its belt in order to relieve citizens from the high cost of fuel.

Speaking on POWER Perspective with Thabo Mdluli, Hlengwa says no one is disputing that the South African government has control over global fuel prices.

He says the government is inconsistent in their attempts to find solutions to price of fuel.

He says it does not make sense to have fuel levies that are so exorbitant when South Africans are struggling.

“I strongly believe there is enough time to look at the budget in the next term of Parliament to rationalise it, review and redirect funds so we can off-set what will be lost to the fiscus. It can’t be fair that South Africans are told to tighten their belts, but government continues to spend. There is no discipline on their part,” Hlengwa adds.